73d CONGRESS.

SESS. I.

CHS. 24, 25.

MAY 3, 12, 1933.

31

certain judgment for $9,277,666.17 entered in the office of the clerk of the District Court of the United States for the Southern District of California at Los Angeles on January 14, 1933, against the Pan American Petroleum Company, a corporation, to release from claim or lien under said judgment such part or portions of the property and assets of the said Pan American Petroleum Company and the Richfield Oil Company of California, in such manner and with such reservations as shall seem to him proper and advisable, in consideration of payments to the United States to apply upon said judgment, of not less than the sum of $5,000,000, and in connection therewith to release any claims of the United States against purchasers of oil and petroleum products from the leases commonly known as "E , "I ", and "G" leases, or also known as Visalia 010042, 010043, and 010097 leases in naval petroleum reserve numbered 1, Kern County, California, and to consent, in the premises, to the assignment of other oil and gas leases in said naval petroleum reserve numbered 1, now part of the unmortgaged assets of Pan American Petroleum Company, with the concurrence of the Secretary of the Navy and to the assignment of other oil and gas leases, also part of the unmortgaged assets of Pan American Petroleum Company, of the United States outside the said naval petroleum reserve numbered 1, with the consent of the Secretary of the Interior, said assignments to be authorized only to assignees otherwise duly qualified under existing laws: Provided, That the authority herein P0otim not irnZ71Approval granted is permissive only, and shall not be construed as a declara- plied. tion of approval by Congress of the compromise herein authorized the Exercse to be made, and that said authority shall not be exercised byshall optional. of authority Attorney General unless in his judgment said compromise appear to him to be for the best interests of the United States. Approved, May 3, 1933.
[CHAPTER 25.1
AN ACT To relieve the existing national economic emergency by increasing agricultural purchasing power, to raise revenue for extraordinary expenses incurred by reason of such emergency, to provide emergency relief with respect to agricultural indebtedness, to provide for the orderly liquidation of joint-stock land banks, and for other purposes. [aR.2 1933.
[Public, No. 10.)

R 3835.]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I-AGRICULTURAL ADJUSTMENT
DECLARATION OF EMERGENCY

,Art Act.

Adjust-

Post, pp. 199, 354.

JUSTMENT.

.GRICULTU L

AD-

That the present acute economic emergency being in part the consequence of a severe and increasing disparity between the prices of agricultural and other commodities, which disparity has largely destroyed the purchasing power of farmers for industrial products, has broken down the orderly exchange of commodities, and has seriously impaired the agricultural assets supporting the national credit structure, it is hereby declared that these conditions in the basic industry of agriculture have affected transactions in agricultural commodities with a national public interest, have burdened and obstructed the normal currents of commerce in such commodities, and render imperative the immediate enactment of title I of this Act.

Declaration of emergency.

HeinOnline -- 48 Stat. 31 1928-1934

73d CONGRESS.
Declaration ofpolicy.
Balance betwen duction an c

SESS. I.

CH. 25.
OF POLICY

MAY 12, 1933.

DECLARATION

prop-

tion to be established,

etc.

Bse period, exept for tobacco.
For tobacco.

So. 2. It is hereby declared to be the policy of Congress(1) To establish and maintain such balance between the production and consumption of agricultural commodities, and such marketing conditions therefor, as will reestablish prices to farmers at a level that will give agricultural commodities a purchasing power with respect to articles that farmers buy, equivalent to the purchasno nower of agricultural commodities in the base period. The base n period in the case of all agricultural commodities except tobacco shall be the prewar period, August 1909-July 1914. In the case of tobacco, the base period shall be the postwar period, August 1919-

Corecin pesntJuly

1929.

oeineq

preentJ

ortin

consure

(2) To approach such equality of purchasing power by gradual correction of the present inequalities therein at as rapid a rate as is deemed feasible in view of the current consumptive demand in domestic and foreign markets. (3) To protect the consumers' interest by readjusting farm production at such level as will not increase the percentage of the consumers' retail expenditures for agricultural commodities, or products derived therefrom, which is returned to the farmer, above the percentage which was returned to the farmer in the prewar period, August 1909-July 1914. PART 1-COTTON OPTION CONTRACTS

COTTONOPTION CON'TRACTS.

SEC.- 3. The Federal Farm Board and all departments and other agencies of the Government, not including the Federal intermediate credit banks, are hereby directedsold to Secretary of To sell to the Secretary of Agriculture at such price as may Agriculture, be agreed upon, not in excess of the market price, all cotton now owned by them. on which money has (b) To take such action and to make such settlements as are necesbeen loaned, etc. sary in order to acquire full legal title to all cotton on which money has been loaned or advanced by any department or agency of the United States, including futures contracts for cotton or which is held as collateral for loans or advances and to make final settlement of such loans and advances as follows: e of settle(1) In making such settlements with regard to cotton, including operations to which such cotton is related, such cotton shall be taken equal over by all such departments or agencies other than the Secretary to Price amount loaned. of Agriculture at a price or sum equal to the amounts directly or indirectly loaned or advanced thereon and outstanding, including loans, Senior loans by the Government department or agency and any loans senior thereto, plus any sums required to adjust advances to growers to 90 per centum of the value of their cotton at the date of its delivery Collateral. in the first instance as collateral to the department or agency Computation. involved, such sums to be computed by subtracting the total amount already advanced to growers on account of pools of which such cotton was a part, from 90 per centum of the value of the cotton to be taken over as of the time of such delivery as collateral, plus unpaid accrued carrying charges and operating costs on such cotton, less, however, any existing assets of the borrower derived from net income, earnings, or profits arising from such cotton, and from operations to which such cotton is related; all as determined by the as col- department or agency making the settlement. Cotton held lateral for loans, etc. (2) The Secretary of Agriculture shall make settlements with respect to cotton held as collateral for loans or advances made by him on such terms as in his judgment may be deemed advisable,
iof
designated

HeinOnline -- 48 Stat. 32 1928-1934

73d CONGRESS.

SESS. I.

CHI. 25.

MAY 12, 1933.
lost receipts.

and to carry out the provisions of this section, is authorized to indemnify or furnish bonds to warehousemen for lost warehouse receipts and to pay the premiums on such bonds. When full legal title to the cotton referred to in (b) has been for the acquired, it shall be sold to the Secretary of Agriculture purposes of this section, in the same manner as provided in (a). (c) The Secretary of Agriculture is hereby authorized to purchase the cotton specified in paragraphs (a) and (b). SEC. 4. The Secretary of Agriculture shall have authority to and borrow money upon all cotton in his possession or control such deposit as collateral for such loans the warehouse receipts for cotton. Sxo. 5. The Reconstruction Finance Corporation is hereby authorized and directed to advance money and to make loans to the Secretary of Agriculture to acquire such cotton and to pay the classing carrying, and merchandising costs thereon, in such amounts and upon such terms as may be agreed upon by the Secretary and the Reconstruction Finance Corporation, with such warehouse receipts as collateral security: Provided, however, That in any instance where it is impossible or impracticable for the Secretary to deliver such warehouse receipts as collateral security for the advances and loans herein provided to be made, the Reconstruction Finance Corporation may accept in lieu of all or any part thereof such other security as it may consider acceptable for the purposes aforesaid, including an assignment or assignments of the equity and interest of the Secretary in warehouse receipts pledged to secure other indebtedness. The amount of notes, bonds, debentures, and other such obligations which the Reconstruction Finance Corporation is authorized and empowered to issue and to have outstanding at any one time under existing law is hereby increased by an amount sufficient to carry out the provisions of this section. SEc. 6. (a) The Secretary of Agriculture is hereby authorized to of cotton to not in enter into option contracts with the producers agreed upon sell to any such producer an amount of cotton to be excess of the amount of reduction in production of cotton by such producer below the amount produced by him in the preceding crop year, in all cases where such producer agrees in writing to reduce the amount of cotton produced by him in 1933, below his production in the previous year, by not less than 30 per centum, without increase in commercial fertilization per acre. . (b) To any such producer so agreeing to reduce production the Secretary of Agriculture shall deliver a nontransferable-option contract agreeing to sell to said producer an amount, equivalent to the amount of his agreed reduction, of the cotton in the possession and control of the Secretary. (c) The producer is to have the option to buy said cotton at the average price paid by the Secretary for the cotton procured under section 3, and is to have the right at any time up to January 1, 1934, to exercise his option, upon proof that he has complied with his contract and with all the rules and regulations of the Secretary of Agriculture with respect thereto, by taking said cotton upon payment by him of his option price and all actual carrying charges on such cotton; or the Secretary may sell such cotton for the account of such producer, paying him the excess of the market price at the date of sale over the average price above referred to after deducting all actual and necessary carrying charges: Provided, That in no event for financial loss shall the producer be held responsible or liable incurred in the holding of such cotton or on account of the carrying charges therein: Provided further, That such agreement to curtail
86637 0-343

Indemnification

of

of Agriculture.

Sale of, to Secretary
Purchase authorized.

Secretary may borUsing warehouse receipts as collateral. Post, p. 1058.

row,

Reconstruction nance Corporation. FiLoans by, author-

icd.

Provis. other than Security warehouse receipts.

Obligations ofCorpo ration increased. Vol. 47, p. 9.

Option contracts to sell cotton to producer
in ien of crop produc-

Post, p. 601. to
Written

agreement

reduce

production.

Nontransferable tion contracts.

o

Producer's option to buy, at price paid by

Secretary.

Secretary may sell, for producer's account. Net profits to inure to producer.

Prior.

HeinOnline -- 48 Stat. 33 1928-1934

73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

Undisposed cotton. Similar contracts and restrictions to be provided.

Provisions for selling, by Secretary. Pest, p. 210. Provisos. Total disposition by March 1, 1936. option Additional contracts.

cotton production shall contain a further provision that such cotton producer shall not use the land taken out of cotton production for the production for sale, directly or indirectly, of any other nationally produced agricultural commodity or product. (d) If any cotton held by the Secretary of Agriculture is not disposed of under subsection (c), the Secretary is authorized to enter into similar option contracts with respect to such cotton, conditioned upon a like reduction of production in 1934, and permitting the producer in each case to exercise his option at any time up to January 1, 1935. SEc. 7. The Secretary shall sell the cotton held by him at his discretion, but subject to the foregoing provisions: Provided, That he shall dispose of all cotton held by him by March 1, 1936: Provided further, That the Secretary shall have authority to enter into additional option contracts for so much of such cotton as is not necessary to comply with the provisions of section 6, in combination with benefit payments as provided for in part 2 of this title.
PART 2 -CoMODITY BENEFITS

Commodity benefits.

Oeneral powers. Secretary of Agriculture. To reduce production of basic agricultural commodities. Post, p. 676. Re~tal or benefit

GENERAL POWERS

of SEC. 8. In order to effecuate 1 the declared policy, the Secretary Agriculture shall have powerT

payments.

Storage ofnonperishable commodities on the farm, etc.
Protection ing, etc.
a,

marketde d n

for inspection etc.

coats,

keting agreement with respect to any agriculturl commodity,

To enter into mar-

etc.

Not to be held as
lating antitrust

laws.
agree-

Prcviso. Duration

0 of

ment. Loans to parties tering agreement; limitation. Vol. 47, p. 6.

"i-

To provide for reduction in the acreage or reduction in the production for market, or both, of any basic agricultural commodity, through agreements with producers or by other voluntary methods, and to provide for rental or benefit payments in connection therewith or upon that part of the production of any basic agricultural commodity required for domestic consumption, in such amounts as the out of any moneys Secretary deems fair and reasonable, to be paid of the Secretary of available for such payments. Under regulations Scrtr pamn.S...lcalns Agriculture requiring adequate facilites for the storage of any non-perishable agricultural commodity on the farm, inspection and measurement of any such commodity so stored, and the locking and sealing thereof, and such other regulations as may be prescribed by the Secretary of Agriculture for the protection of such commodity and for the marketing thereof, a reasonable percentage of any benefit payment may be advanced on any such commodity so stored. In any such case, such deduction may be made from the amount of the benefit payment as the Secretary of Agriculture determines will reasonably compensate for the cost of inspection and sealing, but no deduction may be made for interest. (2),To enter into marketing agreements with processors, assoCi O2 di and h n dling, in the current of interstate or foreign commerce of any agricultural con-modity or product thereof, after due notice and opportunity for hearing to interested parties. The making of any such agreement shall not be held to be in violation of any of the antitrust laws of the United States, and any such agreement shall be deemed to be lawful: Provided, That no such agreement shall remain in force after the termination of this Act. For the purpose of carrying out any such agreement the parties thereto shall be eligible for loans from the Reconstruction Finance Corporation under section 5 of the Reconstruction Finance Corporation Act. Such loans shall not be
(1)

in excess of such amounts as may be authorized by the agreements.
ISo in original.

HeinOnline -- 48 Stat. 34 1928-1934

73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.
Toissuelicenses, permitting handling of any agricultural com. product thereof. p

(3) To issue licenses permitting processors, associations of producers, and others to engage in the handling, in the current of interstate or foreign commerce, of any agricultural commodity or product thereof, or any competing commodity or product thereof. Such licenses shall be subject to such terms and conditions, not in conflict with existing Acts of Congress or regulations pursuant thereto, as may be necessary to eliminate unfair practices or charges that prevent or tend to prevent the effectuation of the declared policy and the restoration of normal economic conditions in the marketing of thereof. The Secresuch commodities or products and the financingsuch license, after due tary of Agriculture may suspend or revoke any notice and opportunity for hearing, for violations of the terms or conditions thereof. Any order of the Secretary suspending or revoking any such license shall be final if in accordance with law. Any such person engaged in such handling without a license as required by the Secretary under this section shall be subject to a fine of not more than $1,000 for each day during which the violation continues. (4) To require any licensee under this section to furnish such u reports as to quantities of agricultural commodities or products thereof bought and sold and the prices thereof, and as to trade practices and charges, and to keep such systems of accounts, as may be necessary for the purpose of part 2 of this title. (5) No person engaged in the storage in a public warehouse of any basic agricultural commodity in the current of interstate or foreign commerce, shall deliver any such commodity upon which a warehouse receipt has been issued and is outstanding, without prior surrender and cancellation of such warehouse receipt. Any person violating any of the provisions of this subsection shall, upon conviction, be punished by a fine of not more than $5,000, or by imprisonment for not more than two years, or both. The Secretary of of Agriculture may revoke any license issued under subsection (3)
this section, if he finds, after due notice and opportunity for hearing,

Terms of issue.

ended orrevoked.
Secretary's order

Licenses may he sus-

fi.

nl.
Penalty for violation.

To reqior licnses furnish reports and
to keep system of ac-

'ar".
wemouml, on which
outstanding, unlawful.

Punishment for.

for violation.
Post,,.

Revocation of license
2.

that the licensee has violated the provisions of this subsection.
PROCESSING TAX Processing tax.
nomic emergeee

SEc. 9. (a) To obtain revenue for extraordinary expenses incurred by reason of the national economic emergency, there shall be levied processing taxes as hereinafter provided. When the Secretary of are to be Agriculture determines that rental or benefit payments made with respect to any basic agricultural commodity, he shall proclaim such determination, and a processing tax shall be in effect with respect to such commodity from the beginning of the marketing year therefor next following the date of such proclamation. The the first processing tax shall be levied, assessed, and collected upon domestic processing of the commodity, whether of domestic production or imported, and shall be paid by the processor. The rate of tax shall conform to the requirements of subsection (b). Such rate shall be determined by the Secretary of Agriculture as of the date the tax first takes effect, and the rate so determined shall, at such intervals as the Secretary finds necessary to effectuate the declared policy, be adjusted by him to conform to such requirements. The processing tax shall terminate at the end of the marketing year current at the time the Secretary proclaims that rental or benefit payments are to be discontinued with respect to such commodity. The marketing year for each commodity shall be ascertained and

Levy of, to meet ecoPosf, p. 676. mental' etc., pay-

Effective date of tax.
etc.

tLevy,

assessment,

Rate.

Termination.

HeinOnline -- 48 Stat. 35 1928-1934

36
rovso.
tax computed. Vol. 47, p. 259. ales

73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933. prescribed by regulations of the Secretary of Agriculture: Provided,

That upon any article upon which a manufacturers' sales tax is levied under the authority of the Revenue Act of 1932 and which manufacturers' sales tax is computed on the basis of weight, such manufacturers' sales tax shall be computed on the basis of the weight of said finished article less the weight of the processed cotton contained therein on which a processing tax has been paid. Rate to equal differ(b) The processing tax shall be at such rate as equals the difference between current farm price and fair ence between the current average farm price for the commodity and exchange value. vleo h xet ~ c~ Factors to be con- the fair exchange value of the commodity; except that if the Secre sidered. tary has reason to believe that the tax at such rate will cause such o. . 67. reduction in the quantity of the commodity or products thereof domestically consumed as to result in the accumulation of surplus stocks of the commodity or products thereof or in the depression of the farm price of the commodity, then he shall cause an appropriate investigation to be made and afford due notice and opportunity for If thereupon the Secretary finds that To prevent accumu- hearing to interested parties. and delation of surplus pression of farm price, such result will occur, then the processing tax shall be at such rate as will prevent such accumulation of surplus stocks and depression Protein content of of the farm price of the commodity. In computing the current wheat. average farm price in the case of wheat, premiums paid producers for protein content shall not be taken into account. Fair exchange value (c) For the purposes of of this title, defined. value of a commodity shall part 2 price therefor the fair exchange be the that will give the commodity the same purchasing power, with respect to articles farmers buy, as such commodity had during the base period speciHow ascertained. fled in section 2; and the current average farm price and the fair exchange value shall be ascertained by the Secretary of Agriculture from available statistics of the Department of Agriculture. Processing" de(d) As used in part 2 of this title"ne"d. (1) In case of wheat, rice, and corn, the term " processing Poet, pp, 528, 670. means the milling or other processing (except cleaning and drying) of wheat, rice, or corn for market, including custom milling for toll as well as commercial milling, but shall not include the grinding or cracking thereof not in the form of flour for feed purposes only. (2) In case of cotton, the term "processing" means the spinning, manufacturing, or other processing (except ginning) of cotton; and the term "cotton" shall not include cotton linters. (3) In case of tobacco, the term " processing" means the manufacturing or other processing (except drying or converting into insecticides and fertilizers) of tobacco. Post, p. 1M. (4) In case of hogs, the term "processing " means the slaughter of hogs for market. Peost, pp 528, 675, (5) In the case of any other commodity, the term "processing" 1242. means any manufacturing or other processing involving a change in the form of the commodity or its preparation for market, as defined by regulations of the Secretary of Agriculture; and in prescribing such regulations the Secretary shall give due weight to the customs of the industry. Pyramiding tax, prof(e) When any processing tax, or increase or decrease therein, iteering, etc. Measures to prevent, takes effect in respect of a commodity the Secretary of Agriculture, in order to prevent pyramiding of the processing tax and profiteering in the sale of the products derived from the commodity, shall Information to be make public such information as he deems necessary regarding published. (1) the relationship between the processing tax and the price paid to producers of the commodity, (2) the effect of the processing tax upon prices to consumers of products of the commodity, (3) the relationship, in previous periods, between prices paid to the producers of the commodity and prices to consumers of the products
.

HeinOnline -- 48 Stat. 36 1928-1934

73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.
Post, p. 675.

thereof, and (4) the situation in foreign countries relating to prices paid to producers of the commodity and prices to consumers of the products thereof.
MISCELLANEOUS

Miscellaneous.

SEC. 10. (a) The Secretary of Agriculture may appoint such officers and employees, subject to the provisions of the Classification Act of 1923 and Acts amendatory thereof, and such experts as are necessary to execute the functions vested in him by this title; and the Secretary may make such appointments without regard to the civil service laws or regulations: Provided, That no salary in excess of $10,000 per annum shall be paid to any officer, employee, or expert of the Agricultural Adjustment Administration, which the Secretary shall establish in the Department of Agriculture for the administration of the functions vested in him by this title. Title II of the Act entitled "An Act to maintain the credit of the United States Government ", approved March 20, 1933, to the extent that it provides for the impoundment of appropriations on account of reductions in compensation, shall not operate to require such impoundment under appropriations contained in this Act. (b) The Secretary of Agriculture is authorized to establish, for in him by the more effective administration of the functions vested producers, of this title, State and local committees, or associations and to permit cooperative associations of producers, when in his judgment they are qualified to do so, to act as agents of their members and patrons in connection with the distribution of rental or benefit payments. (c) The Secretary of Agriculture is authorized, with the approval of the President, to make such regulations with the force and effect of law as may be necessary to carry out the powers vested in him by this title, including regulations establishing conversion factors for any commodity and article processed therefrom to determine the amount of tax imposed or refunds to be made with respect thereto. Any violation of any regulation shall be subject to such penalty, not in excess of $TOO, as may be provided therein. (d) The Secretary of the Treasury is authorized to make such regulations as may be necessary to carry out the powers vested in him by this title. (e) The action of any officer, employee, or agent in determining the amount of and in making any rental or benefit payment shall not be subject to review by any officer of the Government other than the Secretary of Agriculture or Secretary of the Treasury. (f) The provisions of this title shall be applicable to the United States and its possessions, except the Philippine Islands, the Virgin Islands, American Samoa, the Canal Zone, and the island of Guam. (g) No person shall, while acting in any official capacity in the administration of this title, speculate, directly or indirectly, in any agricultural commodity or product thereof, to which this title applies, or in contracts relating thereto, or in the stock or membership interests of any association or corporation engaged in handling, processing, or disposing of any such commodity or product. Any person violating this subsection shall upon conviction thereof be fined not more than $10,000 or imprisoned not more than two years,
or

es.

Officers and employ-" n e

icatonieAtu
45, p. 776; Vol. 46, p.

Vol. 42, p. 1488; Vol.

1003.

VI,p. 31. Supp. Appointment outservice.
side civil

Poviso.

Salary restriction. "Economy Act" provisions not applicable.
Ante, p. 15.

Crative

produc.

ersassoiations may act

as distributing agents

Conversion factorsfor any commodity, etc., may be established. Determination oftax, etc.

Penalty for violation.
Regulations author-

ised.
Determination of amount of rental, etc.,

strictions.
plicable
Provisiona not apto designated

possessions V.. Pot.p. 67g.
cultural commodities. Persona administer-

inc title forbidden.
Penalty for.

both.

(h) For the efficient administration of the provisions of part 2
of this title, the provisions, including penalties, of sections 8,

Power to secure information, pp. 722, 723. Vol. 38, etc. 9, c.sVc., p. 35s.

and 10 of the Federal Trade Commission Act, approved September 26, 1914, are made applicable to the jurisdiction, powers, and duties of the Secretary in administering the provisions of this title and to

HeinOnline -- 48 Stat. 37 1928-1934

73d CONGRESS.
Harins.

SESS. I.

CH. 25.

MAY 12, 1933.

Enforcement, etc., of agreement.

any person subject to the provisions of this title, whether or not a corporation. Hearings authorized or required under this title shall be conducted by the Secretary of Agriculture or such officer or employee of the Department as he may designate for the purpose. The Secretary may report any violation of any agreement entered into under part 2 of this title to the Attorney General of the United States, who shall cause appropriate proceedings to enforce such agreement to be commenced and prosecuted in the proper courts of the United States without delay.
COMMODITIES

"Basic agricultural commodity."
Products

included.

Pest, 1184.

Authority to exclude any commodity-

pp.52,6, 628, 870,

SEC. 11. As used in this title, the term "basic agricultural Cornmodity " means wheat, cotton, field corn, hogs, rice, tobacco, and milk and its products, and any regional or market classification, type, or grade thereof; but the Secretary of Agriculture shall exclude from the operation of the provisions of this title, during any period any such commodity or classification, type, or grade thereof if he Ands, upon investigation at any time and after due notice and opportunity for hearing to interested parties, that the conditions of production, marketing, and consumption are such that during such period this title can not be effectively administered to the end of effectuating the declared policy with respect to such commodity or classification, type, or grade thereof.
APPROPRIATION

SEc, 12. (a) There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $100,000,000 to be available to the Secretary of Agriculture for administrative expenses under this title and for rental and benefit payments made with respect to reduction in acreage or reduction in production for Available until ex-market under part 2 of this title. Such sum shall remain available pended. until expended. Supplemental funds (b) In addition to the foregoing, the proceeds derived from all for expansion of markets, etc. taxes imposed under this title are hereby appropriated to be available to the Secretary of Agriculture for expansion of markets and removal of surplus agricultural products and the following purposes Administrative ex- under part 2 of this title: Administrative expenses, rental and benepenses. fit payments, and refunds on taxes. The Secretary of Agriculture Estimate of needs. and the Secretary of the Treasury shall jointly estimate from time to time the amounts, in addition to any money available under subsection (a), currently required for such purposes; and the Secretary of the Treasury shall, out of any money in the Treasury not otherAdvances, wise appropriated, advance to the Secretary of Agriculture the amounts so estimated. The amount of any such advance shall be deducted from such tax proceeds as shall subsequently become available under this subsection. Services, etc., in the (c) The administrative expenses provided for under this section District ofColumbia. shall include, among others, expenditures for personal services and rent in the District of Columbia and elsewhere, for law books and books of reference, for contract stenographic reporting services, and for printing and paper in addition to allotments under the existing Transfer of funds law. The Secretary of Agriculture shall transfer to the Treasury authorized. Department, and is authorized to transfer to other agencies, out of funds available for administrative expenses under this title, such sums as are required to pay administrative expenses incurred and refunds made by such department or agencies in the administration of this title.
ministrative expenses,

Appropriation for ad-

etc. Post, pp. 528, 605, 678.

HeinOnline -- 48 Stat. 38 1928-1934

73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

TERMINATION OF ACT

SEC. 13. This title shall cease to be in effect whenever the President finds and proclaims that the national economic emergency in relation to agriculture has been ended; and pending such time the President shall by proclamation terminate with respect to any basic agricultural commodity such provisions of this title as he finds are not requisite to carrying out the declared policy with respect to such commodity. The Secretary of Agriculture shall make such investigations and reports thereon to the President as may be necessary to aid him in executing this section.
SEPARABILITY OF PROVISIONS

Termination of Act. Post, p. 677.

Investigations, etc., by Secretary of Agriculture.

SEc. 14. If any provision of this title is declared unconstitutional, or the applicability thereof to any person, circumstance, or commodity is held invalid the validity of the remainder of this title and the applicability thereof to other persons, circumstances, or commodities shall not be affected thereby.
SUPPLEMENTARY

Separability clause.

REvENUE PROVISIONS

nue provisions.

Supplementary reve-

EXEMPTIONS AND COMPENSATING TAXES

SEC. 15. (a) If the Secretary of Agriculture finds, upon investiga- Exempting eommodtion at any time and after due notice and opportunity for hearing to ptriocessing tax. interested parties, that any class of products of any commodity is Posta5 e p 67, 124. of such low value compared with the quantity of the commodity used for their manufacture that the imposition of the processing tax would prevent in whole or in large part the use of the commodity in the manufacture of such products and thereby substantially reduce consumption and increase the surplus of the commodity, then the Secretary of Agriculture shall so certify to the Secretary of the Treasury, and the Secretary of the Treasury shall abate or refund any processing tax assessed or paid after the date of such certification with respect to such amount of the commodity as is used in the manufacture of such products. (b) No tax shall be required to be paid on the processing of any No tax on processing commodity by or for the producer thereof for consumption by his by producers for home of Agri- coumption. own family, employees, or household; and the Secretary culture is authorized, by regulations, to exempt from the payment of the processing tax the processing of commodities by or for the producer thereof for sale by him where, in the judgment of the Secretary, the imposition of a processing tax with respect thereto is unnecessary to effectuate the declared policy. Tax (c) Any person delivering any product to any organization for ucts forrefund on prodcharitable discharitable distribution or use shall, if such product or the com- tribution. modity from which processed, is under this title subject to tax, Pot, P.973. be entitled to a refund of the amount of any tax paid under this title with respect to such product so delivered. Secretarytoascertain (d) The Secretary of Agriculture shall ascertain from time to and proclaim where tax time whether the payment of the processing tax upon any basic causes disadvantages agricultural commodity is causing or will cause to the processors in competition. thereof disadvantages in competition from competing commodities by reason of excessive shifts in consumption between such commodities or products thereof. If the Secretary of Agriculture finds, after investigation and due notice and opportunity for hearing to interested parties, that such disadvantages in competition exist, or will exist, he shall proclaim such finding. The Secretary shall specify fietyncomstn in this proclamation the competing commodity and the compensating tax rate to be specified. rate of tax on the processing thereof necessary to prevent such

HeinOnline -- 48 Stat. 39 1928-1934

73d CONGRESS.
Rate to be altered accordingly.

SESS. I.

CII. 25.

MAY 12, 1933.

disadvantages in competition. Thereafter there shall be levied, assessed, and collected upon the first domestic processing of such competing commodity a tax, to be paid by the processor, at the rate specified, until such rate is altered pursuant to a further finding under this section, or the tax or rate thereof on the basic agricultural Limitation. commodity is altered or terminated. In no case shall the tax imposed upon such competing commodity exceed that imposed per equivalent unit, as determined by the Secretary, upon the basic agricultural commodity. Equalizing ta a " (e) During any period for which a processing tax is in effect with posed on import Post, p. 676. respect to any commodity there shall be levied, assessed, collected, and paid upon any article processed or manufactured wholly or in chief value from such commodity and imported into the United States or any possession thereof to which this title applies, from any foreign country or from any possession of the United States to which this title does not apply, a compensating tax equal to the amount of the processing tax in effect with respect to domestic Peiso. Taxes on articles processing at the time of importation: Provided, That all taxes from U.S. poss ssions collected under this subsection upon drticles coming from the possessions of the United States to which this title does not apply shall not included her ein.
To be expend ted fOr benefit of agricu Iture.seaaepiinoteTeur

Post, p. 676

not be covered into the general fund of the Treasury of the United States but shall be held as a separate fund and paid into the Treasury of the said possessions, respectively, to be used and expended by the governments thereof for the benefit of agriculture. Such tax shall be paid prior to the release of the article from customs custody or control.
FLOOR STOCKS

Floor adjustments. Tax stocks.

SEC. 16. (a) Upon chief value other disposition of any article processed wholly or in the sale or from any commodity with respect

to which a processing tax is to be levied, that on the date the tax first takes effect or wholly terminates with respect to the commodity, is held for sale or other disposition (including articles in transit) by any person, there shall be made a tax adjustment as follows: Levy, etc., of tax on (1) Whenever the processing tax first takes effect, there shall be date processing tax takes effect, levied, assessed, and collected a tax to be paid by such person equivPost, p. 676. alent to the amount of the processing tax which would be payable with respect to the commodity from which processed if the processing Corresponding re- had occurred on such date. fund, etc., on tereina(2) Whenever the processing tax is wholly terminated, there shall tion of tax, be refunded to such person a sum (or if it has not been paid, the tax shall be abated) in an amount equivalent to the processing tax Stocks n retail trade with respect to the commodity from which processed. not affected. (b) The tax imposed by subsection (a) shall not apply to the retail stocks of persons engaged in retail trade, held at the date the Exceptions. processing tax first takes effect; but such retail stocks shall not be deemed to include stocks held in a warehouse on such date, or Refund, etc., not such portion of other stocks held on such date as are not sold or applicable., otherwise disposed of within thirty days thereafter. The tax refund Post, pp. 678, 12. or abatement provided in subsection (a) shall not apply to the retail stocks of persons engaged in retail trade, held on the date the processing tax is wholly terminated.
EXPORTATIONS Export refund. Post, p. 676.

SEC. 17. (a) Upon the exportation to any foreign country (including the Philippine Islands, the Virgin Islands, American Samoa, and the island of Guam) of any product with respect to which a tax has been paid under this title, or of any product processed wholly or in chief value from a commodity with respect to which a tax

HeinOnline -- 48 Stat. 40 1928-1934

73d CONGRESS.

SESS. I.

CH. 25. MAY 12, 1933.

has been paid under this title the exporter thereof shall be entitled at the time of exportation to a refund of the amount of such tax. (b) Upon the giving of bond satisfactory to the Secretary of the Treasury for the faithful observance of the provisions of this title requiring the payment of taxes, any person shall be entitled, without payment of the tax, to process for such exportation any commodity with respect to which a tax is imposed by this title, or to hold for such exportation any article processed wholly or in chief value therefrom.
EXISTING CONTRACTS

portation. Tax free,under bond. Post, pp. 676, 678.

Processing for

ex-

Existing contracts. Prior contracts for delivery after effective date.

SEC. 18. (a) If (1) any processor, jobber, or wholesaler has, prior to the date a tax with respect to any commodity is first imposed under this title, made a bona fide contract of sale for delivery on or after such date, of any article processed wholly or in chief value from such commodity, and if (2) such contract does not permit the addition to the amount to be paid thereunder of the whole of such tax then (unless the contract prohibits such addition) the vendee shall pay so much of the tax as is not permitted to be added to the contract price. (b) Taxes payable by the vendee shall be paid to the vendor at the time the sale is consummated and shall be collected and paid to the United States by the vendor in the same manner as other taxes under this title. In case of failure or refusal by the vendee to pay such taxes to the vendor, the vendor shall report the facts to the Commissioner of Internal Revenue who shall cause collections of such taxes to be made from the vendee.
COLLECTION OF TAXES

Payment by vendee.

Collection and payment by vendor.

Report of failure.

The taxes provided in this title shall be collected by the Bureau of Internal Revenue under the direction of the Secretary of the Treasury. Such taxes shall be paid into the Treasury of the United States. (b) All provisions of law, including penalties, applicable with respect to the taxes imposed by section 600 of the Revenue Act of 1926, and the provisions of section 626 of the Revenue Act of 1932, shall, in so far as applicable and not inconsistent with the provisions of this title, be applicable in respect of taxes imposed by this title: Provided, That the Secretary of the Treasury is authorized to permit postponement, for a period not exceeding ninety days, of the payment of taxes covered by any return under this title. (c) In order that the payment of taxes under this title may not impose any immediate undue financial burden upon processors or distributors, any processor or distributor subject to such taxes shall be eligible for loans from the Reconstruction Finance Corporation under section 5 of the Reconstruction Finance Corporation Act. TITLE II-AGRICULTURAL CREDITS
PART 1-AMENDMENTS TO FEDERAL FARm LOAN ACT
ISSUANCE OF BONDS BY LAND BANKS

SEC. 19. (a)

Collection of taxes.

Provisionsgoverning collections. Vol. 44, p. 93; Vol. 47, p. 269.

Proviso. Postponements. Post, p. 1242. Loans to processors.

Post, p. 677. Vol. 47, p. 6.

AGRICULTUiRAL CREDITS.

Emergency Farm Mortgage Act of 1933.

SECTION 21. Section 32 of the Federal Farm Loan Act, as amended (U.S.C.. title 12, sec. 991), is amended by adding at the end thereof • the following new paragraph: Until such time as the Farm Loan Commissioner determines that Federal farm-loan bonds (other than those issued under this paragraph) are readily salable in the open market at a yield not in excess of 4 per centum per annum, but in no case more than two years after

Federal Farm Loan

Amte105. 42, p.

8; Vol.

u.S.C., p. 314. Federal farm loan may issue land banks
bonds.

Pof, p.346.

HeinOnline -- 48 Stat. 41 1928-1934

73d CONGRESS.
loans. Purchasing outstanding farm mortgages. Vol. 39, p. 372; U.S.C. p. 306. Maximum issue; denominations, etc. Interest guaranteed.
For making new

SESS. I.

CH.25.

MAY 12,1933.

Payment by Secretary if issuing bank unable.

auAppropriation thorized. To become obligation against such bank.

Use, for refinancing outstanding loans.

Final issue. Borrower may tender Interest-guaranteed bonds in payment.

Acceptance authorized.

at par

this paragraph takes effect, Federal land banks may issue farm-loan bonds as authorized under this Act, for the purpose of making new loans, or for purchasing mortgages or exchanging bonds for mortgages as provided in paragraph ' Second ' of section 13 of this Act. The aggregate amount of the bonds issued under this paragraph shall not exceed $2,000,000,000, and such bonds shall be issued in such denominations as the Farm Loan Commissioner shall prescribe, shall bear interest at a rate not in excess of 4 per centum per annum, and shall be fully and unconditionally guaranteed as to interest by the United States, and such guaranty shall be expressed on the face thereof. In the event that it shall appear to the Farm Loan Commissioner that the issuing bank or banks will be unable to pay upon demand, when due, the interest on any such bonds, the Secretary of the Treasury shall, upon the request of the Commissioner, pay the amount thereof, which is hereby authorized to be appropriated out of any money in the Treasury not otherwise appropriated. Upon the payment of such interest by the Secretary of the Treasury the amount so paid shall become an obligation to the United States of the issuing bank or banks and shall bear interest at the same rate as that borne by the bonds upon which the interest has been so paid. After the expiration of one year from the date this paragraph takes effect, if in the opinion of the Farm Loan Commissioner any part of the proceeds of the bonds authorized to be issued under this paragraph is not required for the purpose of making new loans or for purchasing mortgages or exchanging bonds for mortgages as herein provided, such bonds may be issued within the maximum limit herein specified for the purpose of refinancing any outstanding issues of Federal farm-loan bonds; but no such bonds shall be issued after two years from the date this paragraph takes effect for the purpose of such refinancing. Any borrower who obtains a loan from a Federal land bank after the date this paragraph takes effect may, at any time after the expiration of five years from the date such loan was made, tender to such bank on any regular installment date, bonds issued under this paragraph in an amount not to exceed the unpaid principal of his loan, and the bonds so tendered shall be accepted b the bank at par in payment of any part of such unpaid urincipal."
PURCHASE, REDUCTION, AND REFINANCING OF FARM MORTGAGES

Farm mortgages.

SEC. 22. Paragraph "Second" of section 13 of the Federal Farm as amended, Loan Act, new sentence:is amended by adding at the end thereof the following "In order to reduce and/or refinance farm mortgages, to invest Purchase, reduction, refinaing, etc. such funds as may be in its possession in the purchase of first mortgages on farm lands situated within the Federal land-bank district within which it is organized or for which it is acting, or to Limitation on exchange farm-loan bonds for any duly recorded first mortgages on price, farm lands executed prior to the date this paragraph, as amended, takes effect, at a price which shall not exceed in each individual case the amount of the unpaid principal of the mortgage on the date of such purchase or exchange, or 50 per centum of the normal value of the land mortgaged and 20 per centum of the value of the permanent insured improvements thereon as determined upon an appraisal P roigo. made pursuant to this Act, whichever is the smaller: Provided, That Mortgagor's rights. any mortgagor whose mortgage is acquired by a Federal land bank under this paragraph shall be entitled to have his farm-mortgage Vol. 30, pp. 365, 367; indebtedness refinanced in accordance with the provisions of sections U.S.C., pp. 302-304. 7 and 8 of this Act on the basis of the amount paid by the bank for
amended.

Vol.

3, p. U.S.C., p. 306. Pest, p. 347.

372,

his mortgage."

HeinOnline -- 48 Stat. 42 1928-1934

73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

43

EXTENSION OF LOANS

xtensionofloans. SEC. 23. Paragraph "Tenth " of section 13 of the Federal Farm u.s4c., Loan Act, as amended (U.S.C., title 12, sec. 781), is amended by p.oTe, spp. vI, amend ed adding at the end thereof the following: "The terms of any such Term not toecd of any borrower's capacity to meet. extension shall be such as will not defer the collection I obligation due by any borrower which, after investigation by the Post, p. 1060. bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any such extension made prior to the expiration of five years from the date this paragraph as amended takes effect, or in the case of any deferment of principal as provided in paragraph 'Twelfth' of section 12 of this Act, it shall be the Tr-uy duty of the Secretary of the Treasury, on behalf of the United tion to paid-insubscripsurplus making the to cover extension, etc. States, upon the request of the Federal land bank extension, and with the approval of the Farm Loan Commissioner, to subscribe at such periods as the Commissioner shall determine, to the paid-in surplus of such bank an amount equal to the amount of all such extensions and deferments made by the bank during the preceding period. Such subscriptions shall beofsubject to call, in toSubscriptions subject the Commissioner whole or in part, by the bank with the approval upon thirty days' notice. To enable the Secretary of the Treasury Sum authorized for. to make such subscriptions to the paid-in surplus of the Federal land banks, there is hereby authorized to be appropriated the sum of $50,000,000, to be immediately available and remain available until expended. Upon payment to any Federal land bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Farm Loan Commissioner. The amount of any Repayment. subscriptions to the paid-in surplus of any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the approval of the Farm Loan Commissioner, and the Commissioner may at any time require such subscriptions to be repaid in whole or in part if in his opinion the bank has resources available therefor."
REDUCTION OF INTEREST ON LOANS AND DEFERMENT OF PRINCIPAL Loans and deferment of principaL

24. Section 12 of the Federal Farm Loan Act, as amended (U.S.C., title 12, secs. 771-772), is amended by adding at the end thereof the following new paragraph: "Twelfth. Notwithstanding the provisions of paragraph 'Second,' the rate of interest on any loans on mortgage made through national farm-loan associations or through agents as provided in section 15, or purchased from joint-stock land banks, by any Federal land bank, outstanding on the date this paragraph takes effect or made through national farm-loan associations within two years after such date, shall not exceed 4 per centum per annum for all interest payable on installment dates occurring within a period of five years commencing sixty days after the date this paragraph takes effect; and no payment of the principal portion of any installment of any such loan shall be required during such five-year period if the borrower shall not be in default with respect to any other condition or covenant of his mortgage. The foregoing provisions shall apply to loans made by Federal land banks through branches, except that the rate of interest on such loans for such five-year period shall per centum. The Secretary of the be .5 per centum in lieu of 4 Treasury shall pay each Federal land bank, as soon as practicable after October 1, 1933, and after the end of each quarter thereafter, such amount as the Farm Loan Commissioner certifies to the SecreSEC.

avo.

39,

p.

372,

U.S.C.p. 306. rate on loans by national farm-loan associations reduced. u.s.c., p. 307.

ent o prirncipa rower not in default.

loto an rate reduced.

land

Icompensatio

for Appropriation ior. Post, p. 279.

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73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

Less effected.

tary of the Treasury is equal to the amount by which interest payments on mortgages held by such bank have been reduced, during any savings the preceding quarter, by reason of this paragraph; but in any case
in which the Farm Loan Commissioner finds that the amount of

Post, p. 48.
Final payments,

interest payable by such bank during any quarter has been reduced
amount payable to such bank under this paragraph.

by reason of the refinancing of bonds under section 32 of this Act,

the amount of the reduction so found shall be deducted from the
No payments

Appropriation thorized. Post, p.279.

a7. in the Treasury not otherwise appropriated, the sum of $15,000,000

shall be made to a bank with respect to any period after June 30, 1938. There is authorized to be appropriated, out of any money for the purpose of enabling the Secretary of the Treasury to make payments to Federal land banks which accrue during the fiscal year ending June 30, 1934, and such additional amounts as may be necessary to make payments accruing during subsequent fiscal years.
INCREASE OF AMOUNT OF LOANS TO BORROWERS

mortgage loans.
creasd

Federal land bank

SEC. 25. Paragraph " Seventh " of section 12 of the Federal Farm

limit in Loan Act, as amended (U.S.C., title 12, sec. 771) (relating to the Vol. 42, p. 1476. limitations as to amount of loans), is amended by striking out U.S.C., p. 306.

Restriction.

"4$25,000 " and inserting "$50,000, but loans to any one borrower shall not exceed $25,000 unless approved by the Farm Loan Commissioner."
DIRECT LOANS

Federal Farm Loan Act, amended. Vol. 89, p. 867.

SEC. 26. Section 7 of the Federal Farm Loan Act as amended

is amended by striking out the last paragraph and inserting in lieu VoL ., P.3O3. Direct loans on first thereof the following new paragraphs: mortgages to farmers Whenever it shall appear to the Farm Loan Commissioner that

amne1

Frland

ing.

Provisions

Interest rate.

national farm-loan associations have not been formed in any locality in the continental United States, or that the farmers residing in the territory covered by the charter of a national farm-loan association are unable to apply to the Federal land bank of the district for loans on account of the inability of the bank to accept applications from such association, the Farm Loan Commissioner shall authorize said bank to make direct loans to borrowers secured by first mortgover gages on farm lands situated within any such locality or territory. n- Except as herein otherwise specifically provided, all provisions of this Act applicable with respect to loans made through national farm-loan associations shall, insofar as practicable, apply with respect to such direct loans, and the Farm Loan Commissioner is authorized to make such rules and regulations as he may deem necessary with respect to such direct loans.
"The rate of interest on such direct loans made at any time by any

7yto

Borrower required to covenant for proportionate stock in such

Federal land bank shall be one-half of 1 per centum per annum in excess of the rate of interest charged to borrowers on mortgage ssociations. oloans made at such time by the bank through national farm-loan
" Each borrower who obtains a direct loan from a Federal land

bank.

bank shall subscribe and pay for stock in such bank in the sum of
$5 for each $100 or fraction thereof borrowed. Such stock shall be held by such Federal land bank as collateral security for the loan

curity, etc.

Use as collateral

Cancelltion, upon of the borrower and shall participate in all dividends.
loan repayment,

Upon full

payment of the loan such stock shall, if still outstanding, be can-

celed at par, or, in the event that such stock shall have become impaired, at the estimated value thereof as approved by the Farm Loan Commissioner, and the proceeds thereof shall be paid to the borrower.

HeinOnline -- 48 Stat. 44 1928-1934

73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

coveBorrower "Each such borrower may covenant in his mortgage that, when- nant joining toa farmI ever there are ten or more borrowers who have obtained from a loan association when Federal land bank direct loans under the provisions of this section locally formed. aggregating not less than $20,000, and who reside in a locality which may, in the opinion of the Farm Loan Commissioner, be conveniently covered by the charter of and served by a national farm-loan association, he will unite with such other borrowers to form a national farm-loan association. Such borrowers shall organize the associa- Organization, etc. tion subject to the requirements and the conditions specified in this section, so far as the same may be applicable, and in accordance with rules and regulations of the Farm Loan Commissioner. As sooni as Exchange of stock. the organization of the association has been approved by the Farm Loan Commissioner, the stock in the Federal land bank held by each of the members of such association shall be canceled at par, and in lieu thereof the bank shall issue in the name of the association an equal amount of stock in said bank, which stock shall be held by said bank as collateral security as provided in this section with respect Held a coae Thereupon curity to other loans through national farm-loan associations. there shall be issued to each such member an amount of capitalu s e°ltock;ra. stock in the association equal to the amount which he previously held in said bank, which stock shall be held by said association as colpayiaty for lateral security as provided in section 8 of this Act. The board of directors of said association shall adopt a resolution authorizing and directing its secretary-treasurer on behalf of said association to endorse, and thereby become liable for the payment of, the mortgages taken from its charter members by the Federal land bank. When it shall appear to the satisfaction of the Farm Loan Commis- Interest reduced sioner that all the foregoing conditions have been complied with, when conditions comand upon the granting of the charter by the Farm Loan Commissioner, the interest rate paid by each charter member of such association whose loan is in good standing shall, beginning with his next regular installment date, be reduced to the rate of interest paid by borrowers on new loans made through national farm-loan associations in the same Federal land-bank district at the time the said loan was made to such charter member. ges for direct "Charges to be paid by applicants for direct loans from a Federalo land bank shall not exceed amounts to be fixed by the Farm Loan Commissioner and shall in no case exceed the charges which may be made to applicants for loans and borrowers through national Vol. 39, pp. 369, 372. farm-loan associations under the provisions of sections 11 and 13 of this Act."
LOANS TO RECEIVERS

ofreceiver'sw SEC. 27. Any receiver appointed by the Federal Farm Loan Board onrsecurity pursuant to section 29 of the Federal Farm Loan Act, as amended, certifictes taxes,etc. for paying p. or any receiver appointed by a district court of the United States, Vol. 39, 3si. is authorized, for the purpose of paying taxes on farm real estate owned by the bank or securing the mortgages held by it, with the approval of the Farm Loan Commissioner, to borrow from the Reconstruction Finance Corporation and to issue receiver's certifi- Prior lien costicates against the assets of such bank as security for any loan received tuted. from the Corporation under this section, and such certificates shall Reconstrction Ficonstitute a prior lien on such assets. The Reconstruction Finance ance Corporation to Corporation is authorized to make loans to such receivers for the pur- make such loans. poses of this section.

HeinOnline -- 48 Stat. 45 1928-1934

73d CONGRESS.
FEDERAL FARM1-LOAN

SESS. I.
AS

CH. 25.
FOE

MAY 12, 1933.
ADVANCES BY FEDERAL

BONDS

SECURITY

RESERVE BANKS

Farm loan bonds as
security for advances

44, p. 1231. Ante, p.41.

by Federal Reserve Act, as amended, is amended by inserting before the period at the Banks. 38, p. 283.anthbypeg thereof a comma and the following: "or by the deposit or pledge end Vol. Vol. 39, p. 384; Vol. of bonds issued pursuant to the paragraph added to section 32 of the

SEC. 28. The eighth paragraph of section 13 of the Federal Reserve p

Federal Farm Loan Act, as amendedby section 21 of the Emergency Farm Mortgage Act of 1933."
land

banks.

Joint-stock

PART 2-JOINT-STOCK
LIMITATIONS ON

LAND BANKS LENDING

ISSUE OF BONDS AND

oflbonds and lending,

Limitations on issue

SEC. 29. After the date of enactment of this Act, no joint-stock land bank shall issue any tax-exempt bonds or make any farm loans except such as are necessary and incidental to the refinancing of existing loans or bond issues or to the sale of any real estate now owned or hereafter acquired by such bank.
LOANS TO JOINT-STOCK LAND BANKS TO PROVIDE FOR ORDERLY LIQUIDATION

SEC. 30. (a) The Reconstruction Finance Corporation is authora ized and directed to make available to the Farm Loan Commissioner, land banks, to provide ouoftefnsothCoprtotesmo$100,0,tob Corporation, the sum of $100,000,000, to be out of the funds of the orderly liquidation. used, for a period not exceeding two years from the date of enactnane, Corporation.

Reconstruction

Fi-

Loans to joint-stock

ment of this Act, for the purpose of making loans to the joint-stock land banks organized and doing business under the Federal Farm Loan Act, as amended, at a rate of interest not to exceed 4 per centum per annum, payable annually. Such loans shall be made upon application therefor by such banks and upon compliance with Maximunnount. the requirements of this section. The amount which may be loaned hereunder to any such bank shall not exceed an amount having the same proportion to the sa.id $100,000,000 as the unpaid principal of the mortgages held by such bank on the date of enactment of this Act bears to the total amount of the unpaid principal of the mortgages held by all the joint-stock land banks on such date. (b) Any joint-stock land bank applying for a loan under this Collateralsecurity. section shall deliver to the Farm Loan Commissioner as collateral security therefor first mortgages or purchase-money mortgages on farm lands, first mortgages on farm real estate owned by the bank n fee simple, or such other collateral as may be available to said Appraisal of. bank, including sales contracts and sheriff's certificates on farm lands. The real estate upon which such collateral is based shall be u.s.c., p. 304. appraised by appraisers appointed under the Federal Farm Loan Loans not to exceed Act, as amended, and the borrowing bank shall be entitled to borrow 60 percent of collateral not to exceed 60 per centum of the normal value of such real estate as value, determined by such appraisal. Fees for such appraisals shall be Fees paid by the applicant banks in such amounts as may be fixed by the Farm Loan Commissioner. No such loan shall be made until the Agreement by bank applicant bank, under regulations to be prescribed by the Farm to reduce interest upon Loan Commissioner, (1) shall have agreed to grant to each borrower all first mortgages to then indebted to the bank under the terms of a first mortgage a 5percent. reduction to 5 per centum per annum in the rate of interest specified in such mortgage, beginning at his next regular installment date to proceed occurring more than sixty days after the date of enactment of this Not in auaint mortgagor and (2) shall have agreed to the satisfaction of the Commisaa. nsAct, sioner that during a period of two years from the date of enactment of this Act the bank will not proceed against the mortgagor on account of default in the payment of interest or principal due under
Interest rate.

HeinOnline -- 48 Stat. 46 1928-1934

73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

the terms of its mortgage and will not foreclose its mortgage unless Not to foreclose, exthe property covered by such mortgage is abandoned by the mort- ment, etc. gagor or unless, in the opinion of the Commissioner, such foreclosure is necessary for other reasons. Such loans shall be made to aid the orderly liquidation of any such bank in accordance with such plan as may be approved by the Farm Loan Commissioner. Before Approval necessary. any such plan is approved by the Commissioner he shall be satisfied that the plan carries out the purposes of this section and that such part of the proceeds of the loan as is devoted to settlements with bondholders will be used only to effect an equitable settlement with all bondholders. After the plan has been approved by the Commis- ,JicOG bondoldto sioner he shall require the bank to mail a copy thereof to all its known bondholders and to publish a notice setting forth its provisions in at least three newspapers having general circulation.
LOANS BY THE FARM LOAN COMMISSIONER TO JOINT-STOCK LAND BANKS FOR EMERGENCY PURPOSES

Farm Loan Commis.

SEC. 31. (a) Out of the funds made available to him under sec- sLoner C tion 30, the Farm Loan Commissioner is authorized to make loans, Loans by, to jointinan aggregate amount not exceeding $25,000,000, at a rate of interest stock land banks, for certain emergencies. not to exceed 4 per centum per annum, to any joint-stock land bank for the purpose of securing the postponement for two years from the date of the enactment of this Act of the foreclosure of first mortgages held by such banks on account of (1) default in the payment On account of deof interest and principal due under the terms of the mortgage, and principal. (2) unpaid delinquent taxes, excluding interest and penalties, which Delinquent taxes,etc. may be secured by the lien of said mortgage:- Provided, That during Poduor. the period of postponement of foreclosure such bank shall charge period. the mortgagor interest at a rate not exceeding 4 per centum per annum on the aggregate amount of such delinquent taxes and defaulted interest and principal with respect to which loans are made pursuant to this section. The amount loaned to any joint-stock Jeanraaluneland bank under this section shall be made without reappraisal: Provided, That the amount loaned with respect to any mortgage on maximum loan on account of unpaid principal shall not exceed 5 per centum of the aicont ofunpaidprin. total unpaid principal of such mortgage, and the total amount loaned to any such land bank with respect to any mortgage shall not exceed 25 per centum of the total unpaid principal of such mortgage. (b) No such loan shall be made with respect to any mortgage Conditions for makunless the Farm Loan Commissioner is satisfied that the mortgagor, Defaultof mortgagor. after exercising ordinary diligence to pay his accrued delinquent taxes, and meet accrued interest and principal payments, has defaulted thereon; and unless the bank shall have agreed to the satis- Bank will not forefaction of the Farm Loan Commissioner that during such two-year close. period the bank will not foreclose such mortgage unless the prop- Excptions. erty covered thereby is abandoned by the mortgagor or unless in the opinion of the Farm Loan Commissioner such foreclosure is necessary for other reasons. (0) Ech (c) Each such loan shall be secured by an assignment to the theFarmbyLoan to be secured to Farm boan assignment of tax o tax Loan Commissioner of the lien of the taxes and/or of the bank's lien, mortgage, etc. Proviso. mortgage with respect to which the loan is made: Provided, That status of assigned the part of each such lien so assigned representing the interest and lie. principal due and unpaid in any such mortgage which has been assigned to the farm loan registrar shall be subordinate to the existing lien of the bank for the balance of the indebtedness then or thereafter to become due under the terms of such mortgage; but the Farm Loan Commissioner may require the bank to furnish addi- Additional collateral tional collateral as security for such loan, if such collateral is may " "aired. available to the bank.

HeinOnline -- 48 Stat. 47 1928-1934

73d CONGRESS.
Rules, etc., authorized.

SESS. I.

CH. 25.

MAY 12, 1933.

(d) The Farm Loan Commissioner is authorized the purposes rules and regulations as may be necessary to carry outto make such of this section and to make the relief contemplated immediately available.

Farm Loan Commissioner.

Loans to farmers by

PART

3-LOANS

TO FARMERS BY FARM LOAN
REDEMPTION

COMMISsIONER

Sums avaable
direct loans. Post, pp. 345, 347, 1060.

or

SEC. 3.
SC

REDUCTION

The Reconstruction Finance Corporation is authorized
oprto

OF DEBTS AND

OF FORECLOSED FARMS

2

34e, and directed to allocate and make available to the Farm Loan Coinmissioner the sum of $200,000,000, or so much thereof as may be necessary, to be used for the purpose of making loans as hereinafter Security. provided to any farmer, secured by a first or second mortgage upon the whole or any part of the farm property, real or personal, Maximum amount, including crops, of the farmer. The amount of the mortgage given inludig edti g In- by any farmer, together with allprior mortgages or other evidences of indebtedness secured by such farm property of the farmer, shall not exceed 75 per centum of the normal value thereof, as determined U S C., p. 304. upon an appraisar made pursuant to the Federal Farm Loan Act, as Post, p. 347. amended; nor shall a loan in excess of $5,000, be made to any one Amortization plan of farmer. Every mortgage made under this section shall contain repayment. an agreement providing for the repayment of the loan on an amortization plan by means of a fixed number of annual or semiannual installments, sufficient to cover (1) interest on unpaid principal at a rate not to exceed 5 per centum per annum and (2) such payments equal in amount to be applied on principal as will extinguish the debt within an agreed period of not more than ten years or, in the case of a first or second mortgage secured wholly by real property and made for the purpose of reducing and refinancing an existing mortgage within an.agreed period no greater than that for which loans may be made under the Federal Farm Loan Act, as amended, Prounso. Payments on prin- from the date the first payment on principal is due: Provided, That firalmayeasnpended during the first three years the loan is in effect payments of interest defauIt only may be required if the borrower shall not be in default with respect to any other condition or covenant of his mortgage. No ogreemetitaghold- loan shall be made under this section unless the holder of any prior or of priorortgage. mortgage or instrument of indebtedness secured by such farm property arranges to the satisfaction of the Farm Loan Commissioner to limit his right to proceed against the farmer and such farm Purposes set forth, property for default in payment of principal. Loans under this Refnaning indebt- section shall be made for the following purposes only: (1) Refinancing, either in connection with proceedings under chapter VIII Vol. 47, p. 1467. of the Bankruptcy Act of July 1, 1898, as amended (relating to agricultural compositions and extensions), or otherwise, any Providing working indebtedness, secured or unsecured, of the farmer, (2) providing capital. Redemption or re- working capital for his farm operations, and (3) enabling any purchase of farm farmer to redeem and/or repurchase farm property owned by him property. Post, p. 929. prior to foreclosure which has been foreclosed at any time between July 1, 1931, and the date of the enactment of this Act, or which is Chargestoborrowers. foreclosed after the enactment of this Act. The provisions of paraVol. 39, p. 372 graph "Ninth" of section 13 of the Federal Farm Loan Act, as amended (relating to charges to applicants for loans and borrowers from the Federal land banks), shall, so far as practicable, apply to "Farmer" defined. loans made under this section. As used in this section, the term "farmer" means any individual who is bona fide engaged in farming operations, either personally or through an agent or tenant, or the principal part of whose income is derived from farming operations, and includes a personal representative of a deceased farmer.

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73d CONGRESS.

SESS. I.

C . 25.

MAY 12, 1933.
Regulations.

49
Authority of Farm Loan Commissioner to make; to fx componsation rates, etc.

REGULATIONS

SEC. 33. The Farm Loan Commissioner is authorized to make

such rules and regulations, and to appoint, employ, and fix the cornpensation of such officers, employees, attorneys, and agents as may be necessary to carry out the purposes of this title and to make the relief contemplated by this title immediately available, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States: excess of $10.000 shall Provided, That no salary or compensation interms of the foregoing be paid to any person employed under the section.
FACILITIES OF FEDERAL LAND BANKS AND NATIONAL FARM LOAN ASSOCIATIONS MADE AVAILABLE

P8i.

SEC. 34. The Federal land banks and the national farm loan associations are authorized, upon request of the Farm Loan Commissioner, to make available to him their services and facilities to aid in administering the provisions of this title.
PENALTIES

Facitiesmadeavaable.

SEC. 35. Any person who shall knowingly make any material false representation for the purpose of obtaining any loan under part 3 of this title, or in assisting in obtaining any such loan, shall, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than six months, or both.
PART 4-REFINANCING

Penalties-

OFr

AGRICULTURAL IMPROVEM[ENqT DISTRICT

Refinancing of agricultural improvement district indebtedness. Loans by Reconstruction Finance Corporation.
to reduce and refinance

INDEBTEDNESS FOR THE BENEFIT OF FARMERS LOANS BY RECONSTRUCTION FINANCE CORPORATION

SEC. 36. The Reconstruction Finance Corporation is authorized and empowered to make loans as hereinafter provided, in an aggre-* gate amount not exceeding $50,000,000; to drainage districts, levee districts, levee and drainage districts, irrigation districts, and similar

Amount ahorized,

indebtedness of drainage, etc,, districts. pot. pp. 3o8, 111o, 1269. districts, duly organized under the laws of any State, and to political State subdivision agsubdivisions of States, which prior to the date of enactment of this Act, ricultural projects.

have completed projects devoted chiefly to the improvement of lands for agricultural purposes. Such loans shall be made for the purpose of enabling any such district or political subdivision (hereafter referred to as the "borrower ") to reduce and refinance its outstanding indebt-tm edness incurred in connection with any such project, and shall be that (1) the term of any such loan shall not exceed forty years; (2) each such loan shall be secured by refunding bonds issued to the Corporation by the borrower which are a lien on the real property within the project or on the amount of the assessments levied on

and condi-

vol. 47, Supp. VII, subject to the same terms and conditions as loans made under section U.S C., pp 6,714. u7. 5 of the Reconstruction Finance Corporation Act, as amended; except p.

Exception limitation.
Term

Security.

such property by the borrower pursuant to State law, or by such Bonds not to Lssue consent. other collateral as may be acceptable to the Corporation; (3) the without Corporation's •

borrower shall agree not to issue during the term of the loan any
bonds so secured except with the consent of the Corporation; (4)

Payment of excess Post, p. 1110.

the borrower shall pay to the Corporation, until all bonds of the overoperation, interest, toetc. until outstanding borrower held by the Corporation are retired, an amount equal to bonds are retired.
the amount by which the assessments against the real property within

the project collected by the borrower exceed the costs of operation
86637-34 4

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73d CONGRESS.
Correspondigreduction of indebtedness to
borrower. Post, p. 1269. Pro rats basis. Cancellation distribreduction so to equal uted s

SESS. I.

CH. 25.

MAY 12, 1933.

and maintenance of the project and interest on its outstanding obligations; and (5) the borrower shall agree, to the satisfaction of the Corporation, to reduce the outstanding indebtedness to the borrower of the landowners within such project by an amount corresponding to that by which the indebtedness of the borrower is reduced by reason of the operation of this section, to distribute the amount of such reduction among such landowners on a pro rata basis, to cancel and retire its outstanding bonds in an aggregate amount equal to the amount of the reduction so distributed, and to permit the Cor-

ticipate.

Corporation to par- poration, in the case of the payment of the bonds of the borrower or the liquidation of such project, to participate in such payment

or in the proceeds of such liquidation on the basis of the face amount of the bonds so retired plus the face amount of the bonds held by No loan shall be made Requirements to be the Corporation as security for the loan. met before loan made. under this section until the Reconstruction Finance Corporation (A) has caused an appraisal to be made of the property securing and/or underlying the outstanding bonds of the applicant, (B) has determined that the project of the applicant is economically sound, and Post, p 1269. (C) has been satisfied that an agreement has been entered into between the applicant and the holders of its outstanding bonds under which the applicant will be able to purchase or refund such bonds at a price determined by the Corporation to be reasonable after taking into consideration the average market price of such bonds over the six months' period ending March 1, 1933, and under which a substantial reduction will be brought about in the amount of the outstanding indebtedness of the applicant. SEC. 37. The Reconstruction Finance Corporation, upon request Advancestorelamation fund authorized. vol. of vol. 47, p. 5; i2, the Secretary of the Interior, is authorized and empowered to advance from funds made available by section 2 of the Act of p. 388.
Maximum amount. January 22, 1932 (47 Stat.L. 5), to the reclamation fund created
Repayment.

ture.Interest rate.

Manner of expendi-

by the Act of June 17, 1902 (32 Stat.L. 388), such sum or sums as the Secretary of the Interior may deem necessary, not exceeding $5,000,000, for the completion of projects or divisions of projects now under construction, or projects approved and authorized. Funds so advanced shall be repaid out of any receipts and accretions accruing to the reclamation fund within such time as may be fixed by the Reconstruction Finance Corporation, not exceeding five years from the date of advance, with interest at the rate of 4 per centum per annum. Sums so advanced may be expended in the same way as other moneys in the reclamation fund.

iPART Increase of lendingCOORIN 5--INCREASE OF LENDING POWER OF RECONSTRUCTION FINANCE power of Corporation. CORPORATION

PVol 47,p. 319.

SEC. 38. In order to provide fnds to carry out the purposes of this title, the amount of notes, debentures, bonds, or other such obligations which the Reconstruction Finance Corporation is authorized and empowered under section 9 of the Reconstruction Finance Corporation Act, as amended, to have outstanding at any one time, is hereby increased by $300,000,000.
ORDERS

Farm Loan Commis- PART 6--FUNCTIONS OF FARM LOAN COMMISSIONER UNDER ExECUTIVE aboner.

Executive orders.

Functions of, under

SEC. 39. If and when any executive order heretofore transmitted
to the CongressAct of 1933, title IV of part II of the Legislative Appropriation pursuant to as amended, shall become effective,

Vol. 47,

p. 413.

all functions, powers, authority, and duties conferred upon or vested in the Farm Loan Commissioner by this title shall be held and exer-

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73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

cised by him subject to all the terms and conditions in any such Executive order the same as if such functions, powers, authority, and duties were specifically named in such Executive order or orders.
PART 7-MISCELLANEOUS
PERFECTING ORGANIZATION FARM CREDIT ADMINISTRATION

Miscellaneous.
Farm Credit Adnin-

authorized, in carrying out the powers and duties now or hereafter vested in him or the Farm Credit Administration by law or under any Executive order made under title IV of part II of the Legislative Appropriation Act of 1933, as amended, to establish, and to fix the powers and duties of, such divisions, agencies, corporations, and instrumentalities as he may deem necessary to the efficient functioning of the Farm Credit Administration and the successful execution of the powers and duties so vested in the Governor and the Farm Credit Administration. This section shall not be construed to restrict the authority of the President under title IV of such Act, as amended: Provided, That no salary or compensation shall be paid to any ofIlcer, agent, or other person employed under this section in excess of $10,000 per annum.
LOANS TO FRUIT GROWERS

GovAuthority SEC. 40. The Governor of the Farm Credit Administration is ernor of, to of perfect
organization, etc. Vol. 47, p. 413.

anthority of President.
Salryiitation.

ers.

Loans to fruit grow-

SEC. 41. That in making loans to owners of groves and orchards, including citrus-fruit groves and other fruit groves and orchards, the Federal land banks, the farm land banks, and all Government agencies making loans upon such character of property may, in appraising the property offered as security, give a reasonable and fair valuation to the fruit trees located and growing upon said property and constituting a substantial part of its value.
PART

Appraising security

8-SiORT TITLE

SEC. 42. This title may be cited as the "Emergency Mortgage Act of 1933."

Farm
B

Short title.
Financing: Coining

TITLE III-FINANCING-AND EXERCISING POWER CONFERRED B SECTION 8 OF ARTICLE I OF TIE CONSTITUTION: To CoIN MONEY
AND TO REGULATE THE VALTE

oney, etc.

THEREOF

a.Discretionary author-

SEC. 43. Whenever the President finds, upon investigation, that ity of the Pesident. (1) the foreign commerce of the United States is adversely affected Post, p. 343 comnWhen U.S. by reason of the depreciation in the value of the currency of any mereo adversely affectcy other government or governments in relation to the present standard depreciation. Fixing parity value of gold, or (2) action under this section is necessary in order rency issues. of curto regulate and maintain the parity of currency issues of the United Economiceemergency
States, or (3) an economic emergency requires an expansion of credit,
s credit

an

Stabilization by inor (4) an expansion of credit is necessary to secure by international ternationa agreemenL a stabilization at proper levels of the currencies of various agreement governments, the President is authorized, in his discretionCoduct, through (a) To direct the Secretary of the Treasury to enter into agree- Federal Reserve Board, ments with the several Federal Reserve banks and with the Federal open market obligatosin U.S. operaReserve Board whereby the Federal Reserve Board will, and it is tions, etc. hereby authorized to, notwithstanding any provisions of law or Poll, P. 18s.

rules and regulations to the contrary, permit such to agree that they will, (1) conduct, pursuant to throughout specified periods, open market operations of the United States Government or corporations

reserve banks existing law, in obligations in which the

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52
Purehasedireotlyand

73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

additionalto present and hold in portfolio for an agreed period or periods of time
holdings.

United States is the majority stockholder, and (2) purchase directly

Treasury bills or other obligations of the United States Government in an aggregate sum of $3,000,000,000 in addition to those they may then hold, unless prior to the termination of such period or periods No suspension of reserve Suspension of reserve the Secretary shall consent to their sale. requirements not to impose graduated tax requirements of the Federal Reserve banks, under the terms of secon any deficiency in tion 11(c) of the Federal Reserve Act, necessitated by reason of reserves. Vol. 38, p. 262. operations under this section, shall require the imposition of the U.S Cp. 276. graduated tax upon any deficiency in reserves as provided in said Interest or discount section 11(c). Nor shall it require any automatic increase in the rates. rates of interest or discount charged by any Federal Reserve bank, as otherwise specified in that section. The Federal Reserve Board, Measures to expanundue credit prevent with the approval of the Secretary of the Treasury, may require the Federal Reserve banks to take such action as may be necessary, sion. in the judgment of the Board and of the Secretary of the Treasury, to prevent undue credit expansion. If unable to secure (b) If the Secretary, when directed by the President, is unable assent of Federal Reserve banks to author- to secure the assent of the several Federal Reserve banks and the Federal Reserve Board to the agreements authorized in this section, iced agreements, etc. or if operations under the above provisions prove to be inadequate to meet the purposes of this section, or if for any other reason Authority of Presi- additional measures are required in the judgment of the President dent. to meet such purposes, then the President is authorizedUnited States notes ()Tesr eise (1) To direct the Secretary of the Treasury to cause to be issued may be issued. in such amount or amounts as he may from time to time order, Vol. 12,p.343. United States notes, as provided in the Act entitled "An Act to authorize the issue of United States notes and for the redemption of funding thereof and for funding the floating debt of the United size, color, denomi- States", approved February 25, 1862, and Acts supplementary thereto and amendatory thereof, in the same size and of similar color nations, etc. to the Federal Reserve notes heretofore issued and in denominations of issue de- Of $1, $5, $10, $20, $50, $100, $500, $1,000, and $10,000; but notes Purposes fined. issued under this subsection shall be issued only for the purpose of meeting maturing Federal obligations to repay sums borrowed by the United States and for purchasing United States bonds and Retirement of bonds other interest-bearing obligations of the United States: Provided, so purchased. That when any such notes are used for such purpose the bond or other obligation so acquired or taken up shall be retired and canIssue, amounts, tc. celed. Such notes shall be issued at such times and in such amounts
for as the President Appropriation notes outstanding annual cncelation.

Notes, etc., legal tender.

Post, p. 113.

to be standing notes. ~c

may approve but the aggregate amount of such at any time shall not exceed $3,000,000,000. There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, an amount sufficient to enable the Secretary of the Treasury to retire and cancel 4 per centum annually of such outstanding notes, and the Secretary of the Treasury is hereby directed to retire and cancel annually 4 per centum of such outSuch notes and all other coins and currencies hereiee 1 tofore or hereafter coined or issued by or under the authority of

the United States shall be legal tender for all debts public and
President, by procs- private. (2) By proclamation to fix the weight of the gold dollar in grains mation, may fix weight of gold dollar, nine tenths fine and also to fix the weight of the silver dollar in
Silver dollar.

Post, p. 344.

grains nine tenths fine at a definite fixed ratio in relation to the gold

gold and silver dollar against the adverse effect of depreciated foreign currencies, and
at fixed ratio.

Unlimited coinage of

dollar at such amounts as he finds necessary from his investigation to stabilize domestic prices or to protect the foreign comnerce to provide for the unlimited coinage of such gold and silver at the ratio so fixed, or in case the Government of the United States

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73d CONGRESS.

SESS. I.

CH. 25.

MAY 12, 1933.

enters into an agreement with any government or governments fixed by of gold dollar Weight international under the terms of which the ratio between the value of gold and agreement. other currency issued by the United States and by any such government or governments is established, the President may fix the weight of the gold dollar in accordance with the ratio so agreed upon, and To be standard unit alue. such gold dollar, the weight of which is so fixed, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity with this standard and it Parity maintenance. Minimum weight of shall be the duty of the Secretary of the Treasury to maintain such gold dollar. parity, but in no event shall the weight of the gold dollar be fixed Peo, p. 342. so as to reduce its present weight by more than 50 per centum. SEC. 44. The Secretary of the Treasury, with the approval of the Rules, etc., to be President, is hereby authorized to make and promulgate rules and promulgated. regulations covering any action taken or to be taken by the President under subsection (a) or (b) of section 43. Src. 45. (a) The President is authorized, for a period of six forAcceptance of silver ensuing six months, months from the date of the passage of this Act, to accept silver in indebtedness of foreign payment of the whole or any part of the principal or interest now governments. due, or to become due within six months after such date, from any foreign government or governments on account of any indebtedness to the United States, such silver to be accepted at not to exceed the price of 50 cents an ounce in United States currency. The aggre- Limitation on aggregate value of the silver accepted under this section shall not exceed gate amount $200,'000,000. (b) The silver bullion accepted and received under the provisions Siver buon to be of this section shall be subject to the requirements of existing law ments. and the regulations of the mint service governing the methods of determining the amount of pure silver contained, and the amount of the charges or deductions, if any, to be made; but such silver bullion shall not be counted as part of the silver bullion authorized or required to be purchased and coined under the provisions of existing law. in Treasury (c) The silver accepted and received under the provisions of this oruses designated. section shall be deposited in the Treasury of the United States, to Sler certificates, be held, used, and disposed of as in this section provided. (d) The Secretary of the Treasury shall cause silver certificates issue of. to be issued in such denominations as he deems advisable to the Pst, p. 34. total number of dollars for which such silver was accepted in payment of debts. Such silver certificates shall be used by the Treasurer of the United States in payment of any obligations of the United States. Coinage. (e) The silver so accepted and received under this section shall be coined into standard silver dollars and subsidiary coins sufficient, in the opinion of the Secretary of the Treasury, to meet any demands Redemption. for redemption of such silver certificates issued under the provisions of this section, and such coins shall be retained in the Treasury for the payment of such certificates on demand. The silver so accepted Purpose of aiding in maintaining parity of and received under this section, except so much thereof as is coined certificates. under the provisions of this section, shall be held in the Treasury for the sole purpose of aiding in maintaining the parity of such certificates as provided in existing law. Any such certificates or reis- Certificates redeemable in silver dollars, sued certificates, when presented at the Treasury, shall be redeemed etc. in standard silver dollars, or in subsidiary silver coin, at the option of the holder of the certificates: Provlded, That, in the redemption P'o7i0. coins. of such silver certificates issued under this section, not to exceed one Subsidiary third of the coin required for such redemption may in the judgment of the Secretary of the Treasury be made in subsidiary coins, the balance to be made in standard silver dollars.

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54
may reissue.
Silver certificates

73d CONGRESS.

SESS. I.

CHS. 25-27.

MAY 12, 1933.

(f) When any silver certificates issued under the provisions of this section are redeemed or received into the Treasury from any source whatsoever, and belong to the United States, they shall not be retired, canceled, or destroyed, but shall be reissued and paid out mutilated certific., again and kept in circulation; but nothing herein shall prevent the c ancelation and destruction of mutilated certificates and the issue of other certificates of like denomination in their stead, as provided by law. Rulestobeprescribed. (g) The Secretary of the Treasury is authorized to make rules and regulations for carrying out the provisions of this section. Federal eserveAct, Snc. 46. Section 19 of the Federal Reserve Act, as amended, is amendment. Vol. 38, p. 271. amended by inserting immediately after paragraph (c) thereof the U.S.C., p. 287. following new paragraph: Emergency due to Notwithstanding the foregoing provisions of this section, the credit expansion. Federal Reserve Federal Reserve Board, upon the affirmative vote of not less than Board may so declare, o and modify resrve Of its ove members and balances, etc. declare that an emergency with the approval of the President, may exists by reason of credit expansion, and may by regulation during such emergency increase or decrease from time to time, in its discretion, the reserve balances required to be maintained against either demand or time deposits." Approved, May 12, 1933.

[CHAPTER 26.]
May 12, 1933, [H.R.48.] [Public, No. 11.1

AN ACT To extend the time for completing the construction of a bridge across the Missouri River at or near Kansas City, Kansas.

Time extended for bridging, at Kansas City, Kans.

Missouri River.

completing the construction of a bridge across the Missouri River at Vol.4, pp. 704, or near Kansas City, Kansas, authorized to be built by the Interstate 1530; Vol.,p.83., amended. Bridge Company, its successors and assigns, by an Act of Congress approved May 22, 1928, heretofore extended by Acts of Congress approved March 2, 1929, and June 30, 1930, is hereby further extended two years from May 22, 1933. Amendment. SEc. 2. The right to alter, amend, or repeal this Act is hereby expressly reserved. Approved, May 12, 1933.
[CHAPTER 27.]
May 12, 1933. [H.R. 1596.1 [Public, No. 12.]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the time for

AN ACT To extend the times for commencing and completing the construction of a bridge across the Pee Dee River and a bridge across the Waccamaw River, both at or near Georgetown, South Carolina.

Pee Dee and Wacca. maw Rivers. Time extended for bridging, at Georgetown, S.C. Vol. 46, p. 479, amended.

Amendment.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the times for commencing and completing the construction of a bridge across the Pee Dee River and a bridge across the Waccamaw River, both at or near Georgetown, South Carolina, authorized to be built by the county of Georgetown, South Carolina, by an Act of Congress approved May 29, 1930, are hereby extended one and three years, respectively, from May 29, 1933. SEc. 2. The right to alter, amend, or repeal this Act is hereby expressly reserved. Approved, May 12, 1933.

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